Executive Summary

Yemen’s export sector has long suffered from structural weaknesses, but the ongoing conflict has triggered a dramatic collapse. Between 2013 and 2023, annual exports were down 90%, mainly due to disruptions in oil and gas exports, which historically made up 80% of the country’s export revenues. While non-hydrocarbon exports—such as coffee, honey, fish, fruits, and vegetables—have grown in relative importance, they remain small in absolute value, constrained by systemic challenges in governance, infrastructure, finance, technical capacity, and women’s participation. However, non-hydrocarbon export industries’ relatively modest contribution to exports masks their crucial role in supporting general socioeconomic wellbeing through job provision and local development.

It is thus incumbent upon the Yemeni government, private sector, and international stakeholders to pursue a two-pronged strategy to revitalize the country’s export sector, prioritizing the restart of oil and gas exports in the short term to regain macroeconomic stability, while building a diversified, resilient, inclusive, and sustainable export economy in the medium- to long-term.

Key challenges include:

• Weak legal and institutional frameworks, including the absence of a national export strategy and inactive trade agreements;
• Inadequate infrastructure and logistics, with damaged ports, roads, and storage facilities;
• Limited access to export finance, due to the absence of export credit guarantees or insurance mechanisms;
• Poor compliance with international standards, which has triggered export bans and reputational damage; and
• Environmental degradation, threatening the sustainability of key export sectors.

Tailored recommendations for each stakeholder group include:

• The Yemeni government should develop a National Export Strategy, ratify and reactivate dormant trade agreements, modernize infrastructure through targeted investment (including a proposed Export Infrastructure Fund), and establish an Export Credit Agency or pilot export guarantee scheme. It should also enforce quality standards, launch an export quality seal, and integrate sustainability, research, and gender responsive policy into export planning.
• The Yemeni private sector should establish digital marketplaces, sectoral export councils, and a collective export risk fund. Firms should invest in branding, corporate governance, inclusion, and innovation while actively engaging in policy dialogue and peer mentorship initiatives.
• International partners should deepen technical assistance, support trade financing through blended finance and results-based instruments, mediate export bans, and fund initiatives for women’s economic inclusion and climate-resilient innovations. Key proposals include creating an Export Ban Rapid Response Unit and Green Export Labs.

Scaling up exports in Yemen is both urgent and feasible. It requires collaborative leadership, long-term commitment, and a clear vision grounded in sustainability, innovation, and inclusive growth.